CREW has filed two IRS complaints against the Living Word Christian Center:

CREW has filed a second IRS complaint against the Living Word Christian Center.  We filed an IRS complaint against the same church last October for engaging in electioneering.  Ths time, we allege that the Senior Pastor and Founder,  James "Mac" Hammond, has profited from the organization.  The problem is that, as an insider, he shouldn't be benefiting from the non-profit entity. 

Based on reports in the Star-Tribune, the IRS is actively investigating Living Word.  

Facing complaints about his church's tax-exempt status in February 2007, the Rev. Mac Hammond took to the pulpit on live television and said he would "almost welcome an IRS audit."

About two months later, Hammond got his wish, according to documents recently filed in U.S. District Court in Minneapolis.

The Internal Revenue Service is conducting an unusual investigation into whether compensation and loan deals between the Living Word Christian Center of Brooklyn Park (LWCC) and its pastor violated laws for tax-exempt organizations.

The IRS has asked the court to force the church to comply with a demand for detailed financial information. The church failed to respond to a March summons.

CREW has filed two complaints with Internal Revenue Service against the Living Word Christian Center.   In October 2006, we complained about Living Word's electioneering on behalf of congressional candidate Michelle Bachmann -- the church  is a 501(c)(3) organization under the IRS code and, therefore, prohibited from engaging in electioneering.  In February 2007, we alleged that the Senior Pastor and Founder, James "Mac" Hammond, has profited from the organization.  The problem is that, as an insider, he shouldn't be benefiting from the non-profit entity.  Hammond actually got himself a plane in the deal.

Well, things aren't so good at Living Word these days, according to the Minneapolis Star-Tribune.  The plane is for sale:

Is the "Prosperity Gospel" facing a recession? With donations dwindling, Mac Hammond, the high-flying pastor of Living Word Christian Center in Brooklyn Park, says his private jet is for sale.

This comes amid an investigation by the U.S. Senate into some of Hammond's contemporaries -- including one who leads a church where Hammond serves on the board -- and allegations that some ministers may have improperly solicited funds for presidential candidate Mike Huckabee during a conference at which Hammond spoke.

Living Word has also cut its hourlong TV show on Sunday mornings in half to save money, according to the Rev. Brian Sullivan, spokesman for the church.

The channel that broadcasts Pastor Hammond's services notes that Pastor Hammond spent most of his sermon addressing the IRS complaint filed by CREW: 

Mac Hammond spent nearly his entire hour-long sermon, which is broadcast on KARE 11, refuting allegations made by a Washington watchdog group.

That group, Citizens for Responsibility and Ethics, claims the Living Word Christian Center broke federal tax laws by arranging certain lucrative financial deals for Hammond.

"I can understand why a lot of people would look at us with skepticism," Hammond said.

Seems Pastor James "Mac" Hammond gave a sermon reacting to CREW's IRS complaint against the Living Word Christian Center -- and the subsequent media coverage. The Pastor does quite well for himself -- and he told the congregation that he'd welcome an IRS audit according to the Minneapolis Star-Tribune:

In a sermon peppered with "hallelujahs" from Hammond and "amens" from the congregation, Hammond said some of the accusations in the IRS complaint and news story "are inaccurate ... and many paint a picture of the ministry that is grossly inappropriate."

However, he was not specific about inaccuracies except to say that he has two houses in Florida, not two condos. He said he has no control over the board that sets his compensation and that his pay is scrutinized by attorneys.

He got one of many laughs when he said the Star Tribune story had "left out" his two motorcycles. He also quipped that his Porsche has been "an expensive ministry tool" because a State Patrol officer who gave him one of four speeding tickets he has gotten in it went through church membership classes. He said he buys expensive clothes because "if I look decent, I preach better, so I'm really doing it for you, amen."

Hammond said that he has repaid all loans and that if he got favorable terms, it was in place of compensation. He said he would welcome an IRS audit because he has strived to "dot every i and cross every t" on tax rules.

Hey, if Hammond wants the audit and CREW wants the audit, the IRS should do the audit.

CREW received a cease and desist letter today demanding that we take down the Living Word Christian Center documents. An image of the letter is below, however, larger -- and easier to read -- images of the letter can be found by clicking here for page 1 and here for page 2 -- then, double clicking those pages will further enlarge the letters.

To which CREW responded with the letter below (Again, a larger, easier to read image of the letter can be found by clicking here and double-clicking will enlarge that letter, too:

More Minnesota coverage of CREW's IRS complaint against the Living Word Christian Center. This one from the St. Paul Pioneer Press:

A Twin Cities mega-church loaned its pastor nearly $2 million on favorable terms over five years, and a public-interest group has asked the government to investigate whether the deals were legal.

In a complaint filed Thursday, Citizens for Responsibility and Ethics in Washington, or CREW, asked the Internal Revenue Service to look into the loans and other deals between the Rev. James "Mac" Hammond and the board of trustees of his Living Word Christian Center, based in Brooklyn Park.

The citizens group said, based on documents recently obtained by a Minnesota-based Web site, "it appears LWCC has illegally provided" Hammond with "benefits that violate federal tax law."

A spokesman for Living Word said church lawyers and accountants were reviewing the complaint.

"We've always sought to do things above board," said Mark Redman, an associate pastor at the church. "We have no concern that there's any validity to the allegations."

The Minneapolis Star-Tribune wrote about CREW's IRS complaint against the Living Word Christian Center. We filed the complaint, our second against that organization, yesterday -- and this was before the info. about the stunt plane emerged:

 

The group, Citizens for Responsibility and Ethics, says in a complaint to the Internal Revenue Service that the church violated federal tax law that forbids insiders from benefitting from a charitable organization. Between 1999 and 2004, the group says, the church made eight loans worth $1.9 million at favorable rates to its senior pastor and founder, James (Mac) Hammond.

Hammond could not be reached on Thursday, but the church released a statement saying that all contracts and financial transactions are reviewed by its law firm and audited by its accounting firm and that it makes every effort to comply with tax laws.

"Living Word and those outside professionals involved in the conduct of our financial affairs remain confident any fair review of our dealings will reveal the validity of our effort to consistently be an accountable and honest ministry before God, our congregation and our community," said the Rev. Marc Redman, associate pastor.

The Star-Tribune did some digging in to Hammond's lifestyle. He does okay:

Records show Hammond has two Florida condos worth more than $3 million. He pays no taxes on a home in Plymouth that has a pool.

A Lexus and a Porsche are registered under Hammond's name, as well as three boats. A home near Brainerd valued at more than $500,000 is used as a retreat and is church property, a church spokesman said recently.

In a recent interview with the Star Tribune, Hammond said he keeps track of the personal use of his jet and repays the church.

Following up on our IRS complaint against the Living Word Christian Center (LWCC), today, CREW provided newly discovered information suggesting LWCC may have also been paying for a stunt plane that Pastor James "Mac" Hammond currently owns. Yes, a stunt plane. Our press release and the key documents can be found here.

Federal Aviation Administration registration records, discovered yesterday by CREW, reveal that Mr. Hammond currently owns a 1995 Flugzeugbau EA-300L, a small two-seat stunt plane. The manufacturer describes the plane as, “[w]ithout a doubt… the premiere aerobatic, sport and professional aircraft on the market today.” It is unclear how long Mr. Hammond has owned this plane and whether LWCC paid for any of its related costs.

Here's what that model of stunt plane looks like:

CREW has filed a second IRS complaint against the Living Word Christian Center.  We filed an IRS complaint against the same church last October for engaging in electioneering.  Ths time, we allege that the Senior Pastor and Founder,  James "Mac" Hammond, has profited from the organization.  The problem is that, as an insider, he shouldn't be benefiting from the non-profit entity.  Our press release and the accompanying documents, documenting some of the benefits accrued by Hammond, can be found here:

Loan documents given to CREW by the blog Minnesota Monitor show that LWCC showered Hammond with favorable financial deals, including a scheme under which Hammond purchased a plane, partially on credit, from the church and then leased it back. The church then paid Hammond twice the amount per month to rent the plane that Hammond paid the church to buy it.

In addition, the plane remained in Hammond’s possession while the church paid all of the related expenses, including rent to store the plane in Hammond’s own hangar.

The leaseback deal may violate tax law “inurement” rules barring financially favorable deals to insiders like Hammond as well as prohibitions against using charitable resources to compensate insiders for activity not related to the organization’s tax exempt purpose.